Another fun fact on the non-existent US personal savings rate:
In fact, the government's calculation may even overstate how much of a typical paycheck is going into savings.On a more important note, however, watch for me in the center field seats today on Channel 29 in the Twin Cities or on NESN in New England -- my first Red Sox game!
Any money directed into 401(k) plans is considered to be part of take-home pay in the government calcuation. But that 401(k) money isn't available to spend.
Take a person who contributes 10 percent of income to a 401(k). If the government counts him or her as having a zero savings rate, he or she is actually spending about 10 percent more than the actual take-home pay, liquidating assets or taking on debt to support spending.